Are Energy-Efficient Home Upgrades Worth It?

Some upgrades take decades to pay off, while others add real value to your home and comfort to your life.

Calculating simple payback helps determine whether an energy-efficient upgrade is financially worthwhile. MEE KO DONG/Shutterstock

The one thing you can usually count on to increase is utility bills. Sometimes they increase due to the rate charge, and other times because of usage.

There are ways to cut your energy consumption, but the question is, are they worth it? Some energy-efficient upgrades may not save you enough to justify the cost.

Know Your Simple Payback

When making an energy-efficient home upgrade, it’s important to know your “simple payback.” Simple payback is the time it takes for an improvement to “pay itself back” in savings.